What an insurance excess is and when it pays off

When you compare car insurance, the word excess (‘franquicia’ in Spanish) crops up straight away. It’s the part of each claim you pay yourself. If your policy has an excess of a certain amount and the repair costs more, you pay that amount and the insurer pays the rest. If the repair costs less, you pay it all yourself and it usually isn’t worth making a claim.

Where it applies

An excess is typical of comprehensive policies, and applies mainly to own damage, meaning the repair of your car when you were at fault or there is no identified third party. It doesn’t affect third-party liability: if you damage another car, the insurer pays the other party in full. And if another driver causes the accident, you claim on their insurance and shouldn’t pay an excess for your repair.

Some policies have different excesses depending on the cover (glass, theft, own damage) or reduce it if you use one of their network garages. Check the terms to know exactly how much and when you pay.

Why it’s cheaper

Because you take on the small damage, the insurer avoids handling lots of low-value claims. That’s why comprehensive insurance with an excess is usually noticeably cheaper than without one, and usually sits above extended third-party cover.

When it pays off

• If you drive carefully and rarely have bumps, because you’ll seldom pay the excess.
• If your car has some value and you want protection against a major claim without paying for full comprehensive.
• If you could afford to pay the excess in one go if needed.
• If you park on the street and worry more about serious damage than small scrapes.

When it might not

• If you often have small knocks, for example parking in very busy areas.
• If paying the excess all at once would be a problem.
• If the car is old and worth little: sometimes extended third-party cover makes more sense.

A simple calculation

Compare the yearly difference between comprehensive with no excess and with one. Then think about how many at-fault claims you usually have per year. If the price difference is greater than what you would pay in excess for those claims, the excess pays off. It isn’t an exact science, but it helps you decide based on your own figures rather than gut feeling.

At the garage

When it comes to the repair, the garage charges the insurer its share and charges you the excess. Ask for the amount to be clear on the repair estimate and the invoice. If the damage is small and a claim may not be worth it, ask for an estimate before deciding: you’ll know whether the repair exceeds your excess or not.

At Green Car Service Tenerife we give you a clear estimate so you can make an informed decision about claiming, and when you do claim, we take care of dealing with your insurer.